Econ Chapter 4

the desire to own something and the ability to pay for itie: a house

consumers buy more of a good when its price decreases and less when its price increasesie: $1 slice of pizza you can buy two..but would you buy two if a slice was $2?

when consumers react to an increase in a good's price by consuming less of that good and more of other goodsie: finding old Jordan's vs buying the brand new pair

the change in consumption resulting from a change in real incomeie: luxury car

a table that lists the quantity of a good a person will buy at each different price ie: how does the market demand for pizza change when the price falls from $2.50 to $1.00 a slice? page 81

a table that lists the quantity of a good all consumers in a market will buy at each different priceie: page 82 how many slices of pizza does she demand when the price is $1.50?

a graphic representation of a demand scheduleie: page 83 how is the market demand curve similar to Ashley's demand curve

a Latin phrase that means "all other things held constant"ie: When we counted the number of pizza slices that would sell as the price went up or down, we assumed that nothing besides the prize of pizza would change.

a good that consumers demand more of when their incomes increaseie: An increase in Ashley's income from $50 per week to $75 per week will cause her to buy more of a normal good at every price level

a good that consumers demand less of when their incomes increaseie: used books

two goods that are bought and used togetherie: Ski boots and skis

goods used in place of one anotherie: snowboards are a substitute for skis, because consumers will often buy one or the other, not both.

a measure of how consumers react to a change in priceie: lemonade from .25 cents to $25.00

describes demand that is NOT very sensitive to a change in priceie:

describes demand that is very sensitive to a change in priceie:

describes demand whose elasticity is exactly equal to 1ie: $2 for a magazine when the price raises 50% to $3 the newsstand will sell exactly half as many copies as before

the total amount of money a firm receives by selling goods or servicesie: Pizzeria sells 125 slices of pizza per day at $2.00 per slice, total revenue would be $250 per day

Cost to play a game Games played per month$1.50 350$2.00 250$3.00 140$4.00 80